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Project to ensure gas supplies to Astana postponed for cost considerations

07 апреля 2014, 12:32
Photo courtesy of munaigaz.kz
Photo courtesy of munaigaz.kz

The project to ensure gas supplies to Astana, Kazakhstan’s capital city, has been postponed over its high cost, Tengrinews.kz reports, citing the country’s Oil Minister Uzakbai Karabalin as saying before the Majilis (lower chamber).

“The feasibility study for the project was prepared last year and considered by the Government. The construction would require investments of over $1 billion. According to the Ministry of Economic Affairs and Budget Planning, the draft project was deemed as excessively expensive. Given the current economic conditions, the project has been postponed. The Government supported the postponement”, the Minister said when asked about the status of the project.

The Minister said they would make sure sufficient volumes of gas are supplied to feed gas-powered passenger buses in the city. “350 gas-powered buses will be purchased shortly (…) we are working to secure sufficient supplies to keep them operational. Construction works are under way to build 8 gas filling stations”, he said, adding that the filling stations could cater to over 8000 buses.

By the end of the year Kazakhstan is to draft a concept to develop the national gas production and processing industry. Purchasing prices to purchase gas from gas producing companies will remain unchanged until the end of the year.

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